Stora Enso and Arauco conclude acquisition of the majority of Grupo Ence's operations in Uruguay ahead of schedule
STORA ENSO OYJ STOCK EXCHANGE RELEASE 16 October 2009 at 13.30 GMT
Stora Enso and Arauco have completed the acquisition of the majority of Grupo
ENCE's operations in Uruguay announced on 18 May 2009. The joint acquisition on
a 50/50 basis includes approximately 130 000 hectares of owned land and
plantations, 6 000 hectares of leased lands and other operations owned by Grupo
ENCE in the central and western areas of Uruguay. As previously announced, the
enterprise value of the transaction, which was completed ahead of the original
target of the end of 2009, was USD 344 (EUR 253) million, including USD 33
million of assumed debt. Stora Enso's share of the enterprise value is 50%.
“I'm very proud that our team in seamless co-operation with Arauco has been able
to finalise this project ahead of the original schedule. That is a promising
start and will give us a solid platform to go forward with our joint venture and
plans in Uruguay,” says Stora Enso CEO Jouko Karvinen. “Cost-competitive
plantation-based pulp is an essential part of Stora Enso's strategy and in one
step, this transaction has secured the strategic raw material supply for a world
class pulp mill in Uruguay that we are planning jointly with Arauco.”
Stora Enso and Arauco have established a 50/50 joint venture to combine their
existing assets in Uruguay. The parties will integrate the assets acquired from
Grupo ENCE into this joint venture, creating a total land base of approximately
250 000 hectares, nearly half of which is planted with hardwood and softwood.
Stora Enso and Arauco have not taken any investment decision concerning the
construction of a pulp mill in Uruguay.
For further information, please contact:
Nils Grafström, President, Stora Enso Latin America, tel. +55 1181 759 283
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Group Communications, tel. +358 2046 21380
www.storaenso.com
www.storaenso.com/investors
Previous press release concerning the transaction in Uruguay available at
www.storaenso.com/press
- 18 May 2009: Stora Enso and Arauco join forces to create a leadership position
in low-cost pulp through the acquisition of the majority of Grupo ENCE's
operations in Uruguay for USD 344 million
Stora Enso is the world leader in forest industry sustainability. We offer our
customers solutions based on renewable raw materials. Our products provide a
climate-friendly alternative to many non-renewable materials, and have a smaller
carbon footprint. Stora Enso is included in the Global 100 list of the world's
most sustainable companies. Stora Enso is also listed in the Dow Jones
Sustainability Index, the FTSE4Good Index, and the Climate Disclosure Leadership
Index. Stora Enso employs 29 000 people worldwide, and our sales in 2008
amounted to EUR 11.0 billion. Stora Enso shares are listed on NASDAQ OMX
Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares
are traded in the USA as ADRs (SEOAY) in the International OTCQX
over-the-counter market.
STORA ENSO OYJ
Jari Suvanto Ulla Paajanen-Sainio